Calendar spreads

[traderlux]

...there is always a way...

 

[zaitoichi]

is running a very interesting web based class on calendars it started January 7 and runs until March. He is a big advocate of calendars. I am taking the class and it's great .

 

[NeuromanceR]

Quote from NHS:

Even if I had the long leg deep ITM why do I want to have to close the entire trade just because someone decides to exercise the short leg.

Sure, if you're only trading a few contracts and always have plenty of extra cash, then no problemo...you can roll out to the next month.

Quote from NHS:

Trading diagonals will also cost you more initially to finance the longer leg ITM. I guess you can’t have it all.

Remember, your longs don't have to be too far away from your shorts.

And another advantage of diagonals is that you can neutralise vega.

Quote from NHS:

I guess you can’t have it all.

Yes leverage without margin is a wonderful thing.

Just don't overuse it.

Quote from zaitoichi:

is running a very interesting web based class on calendars it started January 7 and runs until March. He is a big advocate of calendars. I am taking the class and it's great .

Lol. Isn't it a shame that ET doesn't allow signatures?

 

[zaitoichi]

Correction: DAN SHERIDAN is currently running a web based class on calendars.

 

[TraderTactics]

Calendar spreads would be good when you are just fairly neutral on the market and you want to generate additional income from your investments.

It is important to cover risks when using this strategy. Your loss is limited to the net premium you paid (the money you paid for the option you purchased minus the money you received for the near-term option you sold.